On December 10, the A-share small metals sector saw a fluctuating upward trend, with the sector index closing up 0.79%.
In the evening of December 10, Lens Technology Co., Ltd. (300433) announced that it had signed a "Share Purchase Intent Agreement" with Leu Song-Show to acquire 100% equity of PMG International Co., Ltd. through cash or other legal means. The specific transaction amount and terms will be determined based on further negotiations following due diligence, audits, and evaluations, with details to be finalized in a formal acquisition agreement.
The company clarified that this intent agreement does not constitute a related-party transaction or a major asset restructuring and will not impact its current fiscal year performance.
This acquisition will enable Lens Technology to swiftly gain mature technologies and customer certifications for server cabinet components (including racks, slides, trays, Busbars, and other parts) for specific domestic and international clients, as well as advanced liquid cooling system integration capabilities. These will complement the company's strong precision component manufacturing and vertical integration from "materials to modules to complete machines," significantly enhancing its competitiveness in AI computing hardware solutions and accelerating its transformation into a global AI hardware innovation platform.
Previously, Lens Technology indicated during investor research activities that it had begun expanding into computing power infrastructure. The company is collaborating deeply with core North American AI hardware clients, initiating AI server-related product development from 2024, starting with chassis structural components (including rails and trays) and gradually expanding into liquid cooling modules and SSD assembly. Currently, the company is engaging with major domestic and international server clients, with chassis components already in mass production and SSD assembly expected to pass customer verification soon, targeting mass production next year.
Financial data shows Lens Technology's sustained growth, with double-digit increases in revenue and net profit from 2022 to 2024. In the first three quarters of 2025, revenue reached 53.663 billion yuan, up 16.08% YoY, while net profit attributable to shareholders rose 19.91% to 2.843 billion yuan.
**Small Metals Sector Gains Momentum** On December 10, the small metals sector rose 0.79%, led by Western Metal Materials hitting the daily limit, Yunnan Chihong Zinc & Germanium surging 6.31%, and Yunnan Tin Co. and Sinomine Resource Group following suit.
Recent price surges were notable in tungsten, with data from China Tungsten Online showing black tungsten concentrate (≥65%) at 363,000 yuan/ton, up 153.85% YTD; ammonium paratungstate (APT) at 535,000 yuan/ton, up 153.55%; and tungsten powder at 880 yuan/kg, up 178.48%, all hitting record highs.
Other metals like cobalt and tin also rallied. On December 10, the Shanghai tin futures contract rose 2.22%, accumulating a 15.74% gain since October, while cobalt spot prices reached 408,000 yuan/ton, up 16.91% over the same period. Rare earth prices stabilized, with praseodymium-neodymium oxide at 585,000 yuan/ton on December 9, up 4% from early October.
**Driving Factors** Price increases stem from supply constraints, favorable macro conditions, and rising downstream demand. Tungsten faces stricter mining quotas and environmental regulations; cobalt exports from the Democratic Republic of Congo remain restricted post-ban expiration; and tin supply is tight due to slow production resumption in Myanmar's Wa State.
Macro-wise, expectations of a Fed rate cut (87.6% probability of a 25-basis-point cut in December) may weaken the dollar, supporting dollar-denominated commodities. Downstream demand from新能源, semiconductors, and defense sectors is boosting strategic small metals.
Western Securities noted that China's export controls on strategic small metals have tightened since 2023, with prices like tungsten hitting records. Amid global supply chain autonomy trends, strategic metals may see valuation reassessment, with potential focus on cobalt, antimony, and tungsten.
**Capital Inflows** The small metals sector attracted heavy capital recently. Wind data shows a net inflow of 1.732 billion yuan on December 10 and 5.443 billion yuan over five days, ranking high among Shenwan secondary industries.
Western Metal Materials led with 1.274 billion yuan in net inflows, achieving three limit-ups in four days. The company is a key supplier of titanium alloys for aerospace and marine engineering, with high market shares in zirconium plates and titanium-steel composites, and is the sole domestic supplier of nuclear-grade silver alloy control rods.
As of December 9, the sector saw 1.879 billion yuan in net financing purchases, with six stocks exceeding 100 million yuan, led by China Uranium (656 million yuan), China Tungsten High New Materials (279 million yuan), and Western Metal Materials (251 million yuan).
China Uranium, listed on December 3 with a 280.04% debut surge, reported 13.764 billion yuan in revenue (up 23.17% YoY) and 1.2 billion yuan in net profit (up 26.03%) for the first three quarters of 2025.
**Performance Highlights** The sector's total net profit for the first three quarters rose 41.42% YoY to 13.589 billion yuan. Five previously loss-making companies turned profitable, while 11 saw profit growth, led by Shenghe Resources (748.07%) and Northern Rare Earth (280.27%), both rare earth players.
Shenghe Resources disclosed capacity expansion plans, with its subsidiary's 15,000-ton high-performance rare earth polishing powder project on track (63% completed), targeting Q1 2026 production.
